Date Received: 2017-03-09
Issue: Dealing with my lender or servicer
Subissue: Trouble with how payments are handled
Consumer Complaint: My student loans were deferred while in graduate school and recently became eligible for repayment. I had existing ACH auto debit instructions setup with Mohela, my loan servicer. Upon the end of deferment, only XXXX of my XXXX loans were drafted by ACH. I was misled to believe that setting ACH payments would include all loans. This misstatement resulted in my remaining loans to be late, incurring additional interest. It was only by chance that I logged onto the Mohela.com website to check my loans that I noticed I was one day late. I am signed up for paperless statements and did not receive an email, phone call, text message or other notification that my loan was delinquent. Had I not logged onto the website I would not have known I was late, would have incurred additional interest charges and possibly had a negative impact on my credit score. I confirmed that all my contact information was correct to ensure any communication from Mohela would be received without error. It is clear that Mohela is purposefully misleading students and borrowers about their ACH auto debit practice. This is a misleading, wrongful practice designed to delay payment to the loan servicer. As such, it increases the interest students pay on their loan and generates a larger profit for the loan servicer. If Mohela were honest about their ACH draft policies, they would have sent correspondence clearly stating that not all student loans are enrolled for ACH debit.
Company Response: Company believes it acted appropriately as authorized by contract or law
State: NY
Zip: 117XX
Submitted Via: Web
Date Sent: 2017-03-09
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: Yes
Date Received: 2017-03-01
Issue: Can't repay my loan
Subissue: Can't temporarily postpone payments
Consumer Complaint: I was unemployed from XXXX XXXX, XXXX to XXXX XXXX, XXXX requested monthly help from Mohela telling them I had number money for any payments for my student loans. They did n't inform me until XXXX XXXX that I could defer with any penalty monthly. In XXXX XXXX I was informed by a Mohela agent that I could have submitted for a 6 month deferment the day that I was unemployed due to my unemployment.
Company Response: Company believes it acted appropriately as authorized by contract or law
State: OH
Zip: 441XX
Submitted Via: Web
Date Sent: 2017-03-01
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: No
Date Received: 2017-02-28
Issue: Can't repay my loan
Subissue: Can't get flexible payment options
Consumer Complaint: I had a private student loan through Mohela back in XXXX-XXXX. In XXXX I reached out to Mohela to discuss payment options. I was having my first daughter and had to put her in daycare so my wife and I could work. I needed to lower my student loan payment to pay for daycare for my daughter. I could not get MOhela to budge. There was no offer of assistance programs, or any discussing on the issue. They needed xx amount of money a month and that was it. I had to default on my loan because I had no other option with my student loan company and they were not willing to help me. I was willing to pay, I just needed to pay a lower amount. Fast forward to XXXX. This loan was taken through the court system and my checks are being garnished every paycheck because of a loan that I tried to pay but could not afford to pay and could not receive any help from the lender. Years later, when they reached out to me when the loan went into final default I still could not get them to budge or provide any payment assistance. This garnishment has affected my family greatly. This loan has affected my family greatly.
Company Response: Company believes it acted appropriately as authorized by contract or law
State: OK
Zip: 74063
Submitted Via: Web
Date Sent: 2017-02-28
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: No
Date Received: 2017-02-27
Issue: Dealing with my lender or servicer
Subissue: Keep getting calls about my loan
Consumer Complaint: Hello. Our daughters Private student loans are being uncooperative as to extra fees, taking parents off as co-signers and ability to consolidate loans for better rate equals saving and lower, payments. We have asked repeatedly. They also call repeatedly harassing us at our home which is illegal. Lenders are XXXX XXXX and Mohela..these loans are from 2006 it 's time that this is paid off and matter closed. Our daughter needs her life back so do we. XXXX XXXX XXXX
Company Response: Company believes it acted appropriately as authorized by contract or law
State: CA
Zip: 949XX
Submitted Via: Web
Date Sent: 2017-02-27
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: No
Date Received: 2017-02-16
Issue: Dealing with my lender or servicer
Subissue: Trouble with how payments are handled
Consumer Complaint: I paid off my loan to Mohela account no. XXXX. But Mohela took out my monthly payment anyway, so they caused an overpayment of {$130.00}. I have called Mohela to try to get that money back but they have refused to send me the {$130.00}. This is a consolidated student loan. XXXX XXXX
Company Response: Company believes it acted appropriately as authorized by contract or law
State: DC
Zip: 200XX
Submitted Via: Web
Date Sent: 2017-02-16
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: No
Date Received: 2017-02-16
Issue: Dealing with my lender or servicer
Subissue: Received bad information about my loan
Consumer Complaint: My original servicer was Mohela. I am on IBR. I called In XXXX to find out if I was able to get my monthly payment of {$900.00} reduced because I changed to a lower-paying XXXX job. I specifically stated that I could continue making payments but I just wanted information. The rep told me that it was no problem and she could send me paperwork to recalculate the payment, and that she would also count that as my annual recertification. She said she would put my account on an administrative hold. I told her that I did n't want her to do anything that would cause my interest to capitalize. I told her many times NOT to do ANYTHING that would cause my interest to capitalize, and XXXX that I could still make my current payment. She said that the administrative hold would n't cause anything to capitalize, she was certain, and this is just what they did normally. I filled out the paperwork and mailed it back. About a month prior, I had also applied for the public service loan forgiveness program. When this paperwork was getting processed with Mohela, my PSLF paperwork finally got processed. I got a letter stating that my loan was being transferred from Mohela to XXXX XXXX because of PSLF. When I went on the Mohela website, it said that they no longer had my loans, and to wait for further information from my new servicer. My automatic debit was no longer being taken out, and my letter also said that the automatic debit information would get transferred to the new servicer. In XXXX, I got a letter from XXXX saying that my automatic debit would be resumed for my XXXX payment. I noticed that the list of loans had my interest CAPITALIZED as my new principal balance was {$300000.00}, where previously it was {$260000.00}. I have since been talking to both Mohela and XXXX XXXX, and both companies continue to tell me that they ca n't do anything. Mohela has continued to change their story. Numerous supervisors have told me that administrative holds are NOT supposed to capitalize, but then when I asked for a letter that I could give to XXXX stating this, they backtracked and refused to give me a letter, trying to say that some form I got in my INBOX ( when the site said they no longer had my loans ) said that the loans were going to capitalize. They said that they are n't responsible for incorrect information that their rep told me, or actions that they took with my loans that I specifically told them NOT to, because of this letter that I did n't even see, and honestly, would not have understood even if I did see it, because I believed the assurances of their representative that my loans would not capitalize. They said that if they still had my loans, they would have allowed me to make my payment of {$900.00} and taken my account off hold, and said the only solution they could offer was for me to ask XXXX if they would do this for me. XXXX refused this option. They continue to say that my problem is with Mohela and that they ca n't do anything about it, because according to regulations, my loans should have capitalized because I asked for my payment to be recalculated. I would NEVER have had my payment recalculated if I knew that it would cause {$40000.00} of interest to be added to my principal balance. I have also gotten multiple stories about which company even capitalized my loans. Mohela put my account on hold on XXXX XXXX and I got a letter on XXXX XXXX stating that my loans were in the process of being transferred to XXXX. My loans capitalized at the end of XXXX, when neither company takes responsibility for even HAVING my loans. I never even had a chance to realize that any of this was going on, or to try to fix it. And now both companies say that they ca n't do anything because it 's the other company 's fault. And I have another {$40000.00} at 7 % interest for 20 years.
Company Response: Company believes it acted appropriately as authorized by contract or law
State: NJ
Zip: 077XX
Submitted Via: Web
Date Sent: 2017-02-16
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: No
Date Received: 2017-02-12
Issue: Dealing with my lender or servicer
Subissue: Need information about my balance/terms
Consumer Complaint: I am a XXXX and work XXXX, all of which qualify for the public service student loan forgiveness program. I have been on the program for several years. I have XXXX things I need help with. First, unfortunately, when I first went on the program I was mistakenly told to sign up for a type of government student loan which did not qualify. I found out and changed to a program which does. The problem is, I ca n't find out exactly when I was put on a qualifying program so I do n't know how many more payments I have to make to reach the 120 payments required on a qualifying loan and have the rest of my loan forgiven. When I called the Department of Education to ask, they told me they do n't know and I have to call my current loan servicer. But when I called them ( MOHELA ), they said they do n't know and told me to call the Department of Education. In the meantime, because individuals combining several part time jobs must work an average minimum of 30 hours per week to qualify as a full time employee and get the loan forgiveness after 120 payments, I have to have a combined XXXX and office hour load of 30 hours per week. This is because most schools will only certify the hours I XXXX and hold office hours when they fill out the employment verification form I must give to the government, even though they know my work load is much heavier. ( I also have to XXXX, etc. ) A normal XXXX load requires XXXX between XXXX- XXXX classes a semester for a total XXXX time of about 9 to 15 hours a week plus one or two office hours a week. I 'm doing double that XXXX load. I would like to cut back my XXXX, but can not do that until I have made the 120 student loan payments under an approved loan program. Can you please tell me how to find out how many payments I have already made under the required loan plan so I can know when I can cut back to a more normal teaching load. Second, Could you also do something about requiring schools to XXXX work more hours then just those XXXX, and include those other hours on the work verification forms we have to turn into the government to verify our work loads. There are many job where the employee is 'out of the office ' but still obviously working many additional hours per week ( inspectors, real estate agents, visiting nurses, plumbers, house painters, etc. ). Can we please do something about this. It is my understanding that for the Affordable Care Act a school has to put about 2 1/2 hours work for every hour a XXXX. That 's a reasonable approximation ( if understating the work most of up put in ).
Company Response: Company believes it acted appropriately as authorized by contract or law
State: NY
Zip: 10040
Submitted Via: Web
Date Sent: 2017-02-12
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: No
Date Received: 2017-02-10
Issue: Dealing with my lender or servicer
Subissue: Don't agree with fees charged
Consumer Complaint: My step-son, XXXX XXXX, and I were scammed by MOHELA Student Loan on XXXX XXXX, 2004. This is the 2nd complaint I 've filed with CFPB against MOHELA. The first complaint # XXXX is still pending. MOHELA used a deceptive and misleading Truth In Lending disclosure and XXXX page loan document. Proof that my step-son is not the only victim can be found by viewing this weblink, it 's a video of an investigative reporter interviewing another victim : XXXX XXXX % XXXX % XXXX % XXXX % XXXX % XXXX & XXXX & XXXX & XXXX Seems that MOHELA is famous for adding interest charges to loans that they purchase from other lenders. Appears to be a " bait and switch '' scam. Shame on MOHELA for taking advantage of high school graduates with no borrowing experience and for snaring parents excited for their children to attend higher education but lacking funds to send them as co-signer on the deceptive loans. MOHELA does not make interest that loans accrue while students attend college clear and obvious so that a first time borrower/recent high school graduate and parent that 's excited for their child to attend higher education can see and understand interest that will accrue while the student is attending college. The weblink video is proof of multiple victims of this scam.
Company Response: Company believes it acted appropriately as authorized by contract or law
State: NC
Zip: 28217
Submitted Via: Web
Date Sent: 2017-02-14
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: No
Date Received: 2017-02-09
Issue: Dealing with my lender or servicer
Subissue: Don't agree with fees charged
Consumer Complaint: XX/XX/XXXX I am again writing about my high irest and high principle on my student loan from MOHELA. I am writing about the fact that the principle has doubled since the inception of my loan. I am writing because I think the interest rates and the enormous of money I now owe is completely unfair. For me, this began with a collection of student loans XX/XX/XXXX. I attended graduate school with the loans. I suffered a bankruptcy and a divorce. My loan as of XX/XX/XXXX was {$55000.00}. It now totals {$97000.00} because of an inability to meet payments and a series of forbearances. Forbearances that MOHELA encouraged me to do. I believe that I have never made a late past XXXX day payment. I have never been reported to the credit bureau in my payment history. I have never defaulted on this loan. I have been paying direct loans and MOHELA {$450.00} a month for quite some time which I had met every month on time. As of XX/XX/XXXX I began making a monthly payment of {$760.00}. My interest rate is XXXX %. Why can I not lower my interest rate to a reasonable level like my mortgage which I was recently able to lower XXXX %. That along with a reasonable student loan payment will allow my family and I to pay our bills. I work XXXX jobs. My wife works. I have my own student loan, a child and a step child with student loans. I have a family of XXXX living in my house. I have a huge interest rate with MOHELA not to mention the fact that my loan payment has increased to a value of {$97000.00}. I do not think my interest rate is fair. I do not think it is fair that I am paying {$97000.00} for an education that actually cost {$55000.00}. I have shown that I willing to pay in a responsible manner. I pay every month and I pay on time. It is not fair that I have this enormous amount of debt that exceedingly surpasses what my initial principle balance should be. It is not fair that others are having their loans forgiven and or the idea that legislation is talking about free tuition for state schools. I have written letters to politicians that have attempted to help me. XXXX such advisement was from the office of XXXX-Ives telling me to contact a " XXXX, Ombudsman '' who apparently has not been interested enough to speak or write to me about my complaint. I am asking you to help me with this matter. A matter that I have asked MOHELA to address. A matter that MOHELA could obviously care less about. It is completely unfair that I am being asked to pay DOUBLE the amount owed for my education. That is pure greed. All MOHELA wants to do is to make as much money as they possibly can from me.
Company Response: Company believes it acted appropriately as authorized by contract or law
State: MA
Zip: 019XX
Submitted Via: Web
Date Sent: 2017-02-09
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: Yes
Date Received: 2017-02-09
Issue: Dealing with my lender or servicer
Subissue: Received bad information about my loan
Consumer Complaint: Mohela was my loan servicer for several years until XX/XX/XXXX/XX/XX/XXXX when I transferred to XXXX in anticipation of XXXX day filing for the XXXX XXXX ( PSLFP ). Upon reviewing my payment history with XXXX, I learned that Mohela had failed to put me on a standard ( " level '' ) PSLFP eligible XXXX repayment program in the summer of XXXX. This was despite the fact that I specified clearly in telephone calls with them that this was what I wanted and despite the fact that I had been only on other PSLFP eligible payment plans prior. Instead, Mohela, without my knowledge and understanding, apparently put me on a standard XXXX plan, which I did not realize until recently. ( This also begs the question - why would I want a XXXX month plan? ) As a result, XXXX informed me that none of the payments I had made since XX/XX/XXXX would likely count as qualifying payments for purposes of the PSLFP, since only XXXX term standard level payments plans qualify, in addition to XXXX, XXXX, and Pay As You Earn plans. In addition, at the same time ( summer XXXX ), Mohela failed to inform me that I was eligible for a payment plan with lower monthly payments ( either the Income Contingent Repayment plan or the amended Pay as You Earn plan ). This was despite the fact that I clearly specified in telephone calls with them that I wanted the PSLFP-eligible payment plan with the lowest monthly payments. Again, I only learned that a payment plan costing less per month should have been available to me once I was switched to XXXX. I estimate that this error on Mohela 's part cost me over {$3500.00} over the course of XXXX months.
Company Response: Company believes it acted appropriately as authorized by contract or law
State: MD
Zip: 20912
Submitted Via: Web
Date Sent: 2017-02-09
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: Yes